What Policies Does Every Charity Need to Have in Place

Introduction

Policies are the backbone of good governance in any charity. They guide decision-making, set standards for behaviour, and demonstrate accountability to donors, regulators, and the public.

The Charity Commission expects trustees to ensure that their charity is well managed and compliant with the law. Having clear written policies not only fulfils this responsibility but also protects the charity’s people, finances, and reputation.

The exact policies you need depend on your charity’s size, activities, and beneficiaries, but some are essential for all organisations.

1. Safeguarding policy

If your charity works with children, young people, or vulnerable adults, a safeguarding policy is a legal requirement. It must explain how your charity prevents and responds to abuse or neglect, outlining the responsibilities of trustees, staff, and volunteers.

Your safeguarding policy should include:

How to recognise and report concerns.

Procedures for responding to incidents.

Vetting and Disclosure and Barring Service (DBS) checks.

Training requirements for staff and volunteers.

Trustees are ultimately responsible for ensuring safeguarding is taken seriously and that everyone understands their duties.

2. Financial controls policy

A financial controls policy ensures that your charity’s money is managed responsibly and reduces the risk of fraud or error. It sets out how income is handled, who can authorise payments, and how financial records are maintained.

A good financial controls policy covers:

Authorisation limits for spending.

Banking procedures and dual signatories.

Expense claims and reimbursement rules.

Cash handling and record keeping.

Monitoring and reporting responsibilities.

This policy helps trustees demonstrate that the charity’s funds are being used only for charitable purposes.

3. Data protection and privacy policy

Charities hold sensitive personal information about donors, beneficiaries, and volunteers. A data protection and privacy policy ensures compliance with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018.

The policy should explain:

What personal data your charity collects and why.

How data is stored, used, and shared.

How long data is kept.

Individuals’ rights to access or delete their information.

This policy should be supported by secure IT systems and regular data protection training for staff and volunteers.

4. Health and safety policy

Every charity has a duty to protect the health, safety, and welfare of its staff, volunteers, and beneficiaries. A health and safety policy outlines how your charity identifies and manages risks in the workplace, at events, or during activities.

The policy should include:

Risk assessment procedures.

Accident and incident reporting.

Emergency procedures and first aid arrangements.

Responsibilities of staff, volunteers, and trustees.

If your charity has five or more employees, this policy must be written down and reviewed regularly.

5. Equality, diversity, and inclusion policy

An equality, diversity, and inclusion (EDI) policy demonstrates that your charity values fairness and does not discriminate on grounds such as age, disability, gender, race, religion, or sexual orientation.

It should set out how your charity:

Promotes equal opportunities for staff, volunteers, and service users.

Prevents discrimination and harassment.

Handles complaints or breaches of policy.

A strong EDI policy not only ensures compliance with the Equality Act 2010 but also helps your charity create a more inclusive and welcoming environment.

6. Volunteer policy

Volunteers are at the heart of many charities. A volunteer policy defines how your charity recruits, trains, supports, and manages its volunteers.

It should cover:

Volunteer rights and responsibilities.

Induction and training procedures.

Expenses and reimbursements.

Supervision and recognition.

How to handle grievances or disputes.

Having a volunteer policy helps set clear expectations and ensures consistency across your volunteer programme.

7. Conflict of interest policy

A conflict of interest arises when a trustee, staff member, or volunteer could personally benefit from a charity decision. A conflict of interest policy helps prevent this by explaining how to identify, declare, and manage potential conflicts.

The policy should require:

Regular declarations of interests from trustees.

Recording of conflicts in meeting minutes.

Procedures for managing or removing individuals from related decisions.

This protects the charity’s integrity and ensures that decisions are made in the public interest.

8. Fundraising policy

If your charity raises money from the public, a fundraising policy helps ensure compliance with the Fundraising Regulator’s Code of Practice. It shows donors that you fundraise ethically and transparently.

It should include:

How donations are solicited and recorded.

How to handle complaints from donors.

Rules for working with third-party fundraisers.

How to protect vulnerable donors.

The policy should also outline how the charity ensures compliance with data protection and financial regulations in its fundraising activities.

9. Reserves policy

A reserves policy explains why your charity holds certain levels of reserves and how they will be used. Funders and regulators look for this to ensure that your charity is managing resources prudently.

The policy should state:

The target level of reserves.

How reserves are calculated.

When reserves may be used.

Plans for replenishing reserves if they fall below target.

This policy demonstrates financial planning and sustainability.

10. Complaints policy

A complaints policy ensures that anyone interacting with your charity can raise concerns easily and that those concerns are handled fairly.

It should explain:

How to make a complaint.

Who investigates complaints and how long it will take.

How the outcome will be communicated.

How complaints are logged and reviewed.

An effective complaints process shows accountability and commitment to continuous improvement.

11. Risk management policy

Every charity faces risks, from financial loss to reputational damage. A risk management policy outlines how your charity identifies, assesses, and mitigates these risks.

It should describe:

How risks are categorised and prioritised.

Who is responsible for monitoring and reviewing risks.

What controls or contingency plans are in place.

Trustees are required by law to manage risk proactively and demonstrate that appropriate safeguards are in place.

12. Environmental or sustainability policy

Many funders and supporters now expect charities to consider their environmental impact. A sustainability policy sets out how your charity reduces waste, saves energy, and promotes environmentally friendly practices in its operations.

Even simple actions such as recycling, reducing travel, and using digital communications can demonstrate your commitment to sustainability.

Reviewing and updating policies

Having policies in place is not enough—they must be reviewed regularly, ideally every 12 to 24 months, or whenever there are legal or operational changes. Trustees should ensure that staff and volunteers are familiar with the policies and that training is provided where necessary.

Policies should be written clearly, stored securely, and made accessible to those who need them.

Common mistakes to avoid

Copying generic templates without adapting them to your charity.

Failing to review and update policies regularly.

Not communicating policies to staff and volunteers.

Having policies that are too complex or unclear.

Ignoring legal requirements for safeguarding or data protection.

Avoiding these pitfalls ensures that your policies are meaningful, practical, and compliant.

Conclusion

Every charity needs a strong set of policies to operate safely, legally, and effectively. Core documents such as safeguarding, financial control, data protection, and health and safety policies protect both people and resources.

By keeping policies up to date and embedding them into everyday practice, trustees demonstrate good governance and accountability. Well-managed policies not only reduce risk but also strengthen your charity’s reputation, helping you build trust with funders, regulators, and the communities you serve.